Viacom's Comedy wrap

Viacom, the owner of the MTV network, yesterday agreed to buy AOL Time Warner's 50% stake in Comedy Central, producer of cartoon series South Park, for $1.2bn (£790m).

The world's third largest media group announced the deal alongside first quarter results showing a return to profit after last year's $1.1bn loss.

Revenues for the three months to the end of March rose 7% to $6bn, with net earnings of $443m.

The deal will make Viacom sole shareholder of Comedy Central. Viacom's chief executive, Sumner Redstone, described it as a "significant" transaction. It is also an important disposal for AOL Time Warner, which is under pressure to reduce its debt.

Viacom's chief operating officer, Mel Karmazin, said the group, which also owns the Paramount film studio and the Blockbuster video chain, would focus on improving the performance of its ailing Infinity radio and outdoor advertising divisions. The TV arm, home to the CBS and UPN networks, reported a 3% rise in advertising revenues.

Viacom has promised to pour more money into original programming for MTV in 2003, including a British version of the hit US show Total Request Live.